KCPO - Sell For Now But Beware Of The Lurking Bulls - 9/10/2012

The market did went back above the top band but the Stochastic failed to compliment the signal. So I did not enter any new position. Then price suddenly collapsed and broke below the top band which is in line with the negative Stochastic. So this time I sold. By the next 2 days, first the DMI went negative , then followed by the MACD which also gone negative.


Please take note that the MACD is near crossing down its zero signal line which usually used to determin the bears/bulls zone. Another item to pay attention is the lower band which seems to be provide some support. I have drawn another horizontal line to mark out another support level whcih were tested several times. That level will be another important support zone, so if price is to go below that level, we should see hell break loose.
 

 
The weekly chart is a chart of contradiction where the Stochastic is positive while the MACD is negative. The bears seem to gaining an upper hand with price's high and low are lowe than the previous week's. The DMI stays negative. The ADX stays flat, so I think we are still having a listless market for now.

For now the lower band and the recent low of 2820 are providing a support to to this market. These supports are very important and if they are taken out, it would  erase off the bullish divergence.But for the moment with the double bottoms formation and bullish divergences found at both the daily and weekly chart are still intact, I am still taking side with the bulls. Of course I would just  following the daily signals while keeping an eye on the lurking bulls.